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Q1. What mean marketing channel with respect to their functions?

 Marketing channel is a system which ensures the distribution of the merchandise from the
producer to the consumers by passing it through multiple levels known as middlemen.
 Functions
 Sorting:- The middle men purchase goods from multiple manufacturers and segregate
the products which are similar in quality, features, size, etc.
 Accumulation:- Marketing channels ensure regular supply and circulation of goods in
the market since the middlemen involved in the process are responsible for maintaining
the required stock in ample quantity.
 Assorting:- The customers can avail a large variety of products since the middlemen buy
goods from the manufacturers or suppliers located in different regions and make them
available to the customers at one single place.
 Negotiation:- The middlemen is the person who bargains with the manufacturer as well
as the consumer for the product's price, proportion. quality, after- sale service,
guarantee ,etc.
 Risk-Taking:- The middle men ,i.e. the wholesalers and the retailers have to bear the risk
related to products like expiry, breakage, spoilage, damage, etc.
Q2. Define briefly channel design and the major approach for choosing such design?
 Channel design refers to those decisions involving the development of new marketing
channels where none had existed before or to the modification of existing channels.
 Channel design are critical because they determine a product's market presence and
buyer's accessibility to the product.
Major approaches for choosing channel design:-
 Define business goals:- What are the business assets, What are the marketing assets,
what is our budget, What are our goals,
 Define the audience:- Learn about the audience, use research tools to build audience
persona, Understand the audience's buying habits.
 Test channels:- paid advertising, social media organic campaigns and paid ads, email
marketing
 Analyze:- Analyze each channel, Gather feedback, Learn users behavior, Refine
campaigns
 Adapt:- Come up with solutions, Stick to the most profitable channels, co-ordinate
campaigns, Maximize customer acquisition.
Q3. In marketing channels, how conflict is transpire/occur?
 Channel conflict can be occur by dispute, difference, discord arising between two or
more channel partners, where one partner's activities or operations affect the business,
sales, profitability, market share or similar goal accomplishment of the other channel
partner.
Q4. What are the major causes of channel conflict?
 Role Ambiguity:- The uncertain act of an intermediary in a multi-channel arrangement
may lead to disturbance in the channel of distribution and cause conflict among the
intermediaries.
 Incompatible Goals:- When the manufacturer and the intermediaries do not share the
same objectives, both work in different directions to meet their ends, this results in
channel conflict.
 Marketing or Strategic Mis-Alignment:- Sometimes, two-channel partners promote the
manufacturer's product in a different manner, which created two different images of the
same product in the consumers' mindset, which creates conflicting brand perception.
 Difference in Market perception:- The manufacturer's understanding of the potential
market and penetration into a specific region or territory, may vary from the perception of
the intermediaries, which can create conflict and reduce the intermediary's interest in
capturing that particular market.
 Change Resistant:- When the channel leader plans to modify the distribution channel,
the intermediaries may or may not accept this change.
 Improper Geographic or Demographic Distribution:- If the sales territory has narrow
consumer base, and the channel leader allows many selling partners, they tend to lose
interest soon because of low profit and limited sales.
Q5. how to resolve it?
 Mediation, Arbitration and Diplomacy:- To resolve a dispute, the manufacturer can
adopt the strategy of intervenes to create harmony. The other option is Arbitration, Where
an arbitrator listens to the argument of the parties involved in a conflict and declares a
decision. or, the parties can resort to diplomacy where the representatives of both the
parties conversant and find a solution.
 Co-optation:- The manufacturer should hire an expert who has already gained
experience in managing the channel conflicts in other organizations, as a member of the
grievance redressed committee or board of directors, for addressing such conflicts.
 Dealer councils and Trade Associations:- To handle the horizontal or vertical conflicts,
the manufacturer forms a dealer council where the dealers can unanimously put up their
problems and grievances in front of the channel leader. To bring in unity among the
channel partners or intermediaries, they can be added as members in trade association
which safeguards their interest.
 Regular communication:-The channel leader should take regular feedback from the
channel partners through formal and informal meetings to know about market trends and
dynamics. Also, the channel partner's issues and conflicts can be addressed through
frequent interactions.
 Set superior Goals:- Establishing a supreme goal of the organization and aligning it with
the individual goals or objectives of the channel partners, may reduce the channel
conflicts.
 Legal procedure:-When the conflict is critical and uncontrollable by the channel leader,
the aggrieved party can seek legal action, by filing a lawsuit against the accused party.
 Fair pricing:-Most of the channel conflicts are a result of the price war, and therefore,
these can be resolved by ensuring that products are equally priced in all the territories and
a fair margin is provided to the channel partners.

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